Section 91 of the Delhi Value Added Tax Act, 2004: Cognizance of Offences

Section 91 of the Delhi Value Added Tax Act, 2004 (DVAT Act) governs when a criminal court may take cognizance of an offence, which court may try it, and whether an offence under the Act or its rules is cognizable and bailable.

Scope: The DVAT Act continues to be relevant to matters governed by its surviving provisions, including applicable legacy proceedings and goods outside GST where the law so provides. The facts, relevant tax period, statutory amendments and transitional provisions must be checked before applying this section.

Text of Section 91: Cognizance of offences

(1) No court shall take cognizance of any offence under this Act or rules made thereunder except with the previous sanction of the Commissioner, and no court inferior to that of a Metropolitan Magistrate shall try any such offence.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) all offences punishable under this Act or the rules made thereunder shall be cognizable and bailable.

Section 91(1): Previous sanction and competent court

Previous sanction means approval by the Commissioner before the criminal court takes cognizance of an offence under the DVAT Act or rules. It is a statutory prerequisite for the court to take cognizance; the sanction requirement is distinct from the question whether the prosecution can ultimately prove the offence.

Cognizance is the judicial act of applying the court's mind to an alleged offence for proceeding under criminal law. Section 91(1) also provides that no court below the level of a Metropolitan Magistrate may try an offence under the Act or rules.

Section 91(2): Cognizable and bailable offences

Cognizable describes an offence for which police powers of investigation and arrest are governed by the applicable criminal procedure law without the ordinary requirement of a magistrate's order applicable to non-cognizable offences. Bailable means an accused has the statutory entitlement to bail upon complying with the prescribed conditions.

Section 91(2) expressly characterizes offences punishable under the DVAT Act or its rules as both cognizable and bailable, notwithstanding the Code of Criminal Procedure, 1973. For proceedings initiated under current criminal procedure law, the Bharatiya Nagarik Suraksha Sanhita, 2023 and its repeal-and-savings framework must also be considered; the reference to the 1973 Code in the text above is retained as enacted in the supplied provision.

Section 89 specifies offences and criminal penalties. Section 90 concerns liability for offences by companies and certain other entities. Section 92 addresses investigation, and Section 93 concerns compounding. Section 88 explains the relationship between tax assessment, statutory penalties and prosecution. These provisions should be read together with Section 91.

Practical legal considerations

Identify the exact offence and the applicable version of the DVAT Act and rules for the relevant period.
Examine whether the Commissioner gave previous sanction before cognizance was taken.
Check whether the court trying the case satisfies the Metropolitan Magistrate requirement.
Distinguish the statutory classification as cognizable and bailable from the separate requirements for lawful investigation, arrest and prosecution.

Official legal resources

For the operative law, amendments, notifications and departmental guidance, consult the Department of Trade and Taxes, Government of NCT of Delhi, the India Code statutory database, and the Gazette of India. Verify the current text and applicable notifications against the relevant period.